In June of 2003‚ Martha Stewart was indicted on several criminal and civil counts from the U.S. Securities and Exchange Commission (SEC) . Without consideration of the verdict‚ the question remains; Did Martha Stewart‚ as CEO‚ act responsibly? Even though she was found guilty on all four counts against her‚ she could still be considered to have acted ethically. To determine the responsibility and ethics of her actions‚ the specifics of the case will be applied to a process to determine both the utility
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Case 6.10 – Martha Stewart: Not Such a Good Thing 1. What issues did Martha Stewart‚ Bacanovic‚ and Faneuil miss in making their decisions about selling the ImClone stock in their conduct following the sales? Apply the models and make a list of suggested questions they could have asked that might have affected their decisions. I do not feel any of them were thinking about any consequences! Why was this small amount of money so important to them‚ especially Ms. Stewart‚ who was a multi-
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INTRODUCTION Martha Stewart a known celebrity and founder of Martha Stewart Living Omnimedia (a business which is built on showing others how to cost effectively manage and decorate the home)‚ who was given a tip by Douglas Fanueil and Mr. Bacanovic‚ employees of the Merrill Lynch brokerage company. This tip which broke the confidentiality policy of the brokerage company led to the subsequent sale of Martha’s shares in the ImClone company during the latter company’s blackout period with the effects
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1. What issues did Martha Stewart‚ Bacanovic‚ and Faneuil miss in making their decisions about selling the ImClone stock in their conduct following the sales? Apply the models and make a list of suggested questions they could have asked that might have affected their decisions. I do not feel any of them were thinking about any consequences! Why was this small amount of money so important to them‚ especially Ms. Stewart‚ who was a multi- billionaire at the time? It is clear that they weren’t
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2001 Martha Stewart was contacted with some information that was clearly not public knowledge at the time. Her broker‚ Peter Bacanovic‚ had attempted to contact Stewart to inform her that ImClone shares were going downward and the Waksals were selling all their shares. Under the Client Information Privacy Policy of Merrill Lynch it clearly states that they “do not release client information‚ except upon a client’s authorization”. Bacanovic had ignored the policy and had chosen to inform Stewart of
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Case Study: The Trial of Martha Stewart 1. I’m convinced that Martha Stewart did commit the crime of insider trading‚ on December 27‚ 2001. Looking at the events leading to her decision to liquidate her shares in ImClone‚ it is evident that she was in possession of material information that was not available to the public yet. The fact that her Financial Advisor‚ Mr. Bacanovic had instructed Faneuil to call Martha Stewart and let her know of the selling frenzy that was going on with the Waksal’s
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that can cause lawful consequences. For example‚ in December of 2001‚ Martha Stewart sold over 3‚000 shares of Imclone System Stocks to save her $45‚000 on her ImClone stocks. She was convicted of conspiracy‚ false statement‚ and prejury changes. For this crime she was only sentenced to 10 months imprisonment‚ had to pay fines and penalties that exceeded $250‚000‚ and was no longer allowed to be President of Martha Stewart Living Omni-media. No lets take a look at the penalties for committing
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Martha Stewart Weddings is a bridal magazine that assists brides‚ wedding planners‚ and others who are involved in planning a wedding in adding a unique signature style to a special wedding’s details. Every vibrant issue features articles‚ containing original advice about everything necessary to plan your special day with ease! The Queen of keeping a lovely home and celebrating in style‚ Martha Stewart‚ offers excellent ideas for even the smallest detail of your wedding day. Take advantage of
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the FDA. She had her broker sell her 4‚000 shares valuing $230‚ before the news hit and later found guilty of insider trading. According to the Daniel Fund Ethics Initiative at the University of New Mexico‚ the charges of securities fraud against Stewart were dropped but she served five months in prison and five months on house arrest for four counts of obstruction of justice and lying to investigators (Brunet‚
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occurs by individuals close to the upper level management of an organization. This type of unethical behavior undermines the stability of the organization. In the ImClone scandal where Martha Stewart was indicted for her involement‚ the stability of her company suffered and the companies and people associated with Ms. Stewart suffered as a result of her decision. In this essay I will examine the parties that were privileged to knowing ImClone’s stock was going to drop and those who did not know
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